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WASHINGTON — JPMorgan Chase & Co. will pay $920 million and has admitted that it failed to
oversee trading that led to a $6 billion loss and renewed worries about risk-taking by major
banks.

U.S. and U.K. regulators said yesterday that the largest U.S. bank’s weak oversight allowed
traders in its London office to assign inflated values to transactions and cover up huge losses as
they ballooned. Two of the traders are facing criminal charges of falsifying records to hide the
losses.

The combined amount JPMorgan is paying three U.S. regulators and the U.K.

Financial Conduct Authority adds up to one of the largest fines levied against a financial
institution.

The Securities and Exchange Commission fined the bank $200 million and required a rare admission
of wrongdoing. The Federal Reserve Board imposed a $200 million penalty, while the Office of the
Comptroller of the Currency set a $300 million fine. The British regulator fined the company $220
million.

The U.S. Justice Department is still investigating the bank for possible criminal
violations.

The SEC said that the breakdown in supervision stretched beyond the trading operations to the
bank’s top executives.

“JPMorgan’s senior management broke a cardinal rule of corporate governance: Inform your board
of directors of matters that call into question the truth of what the company is disclosing to
investors,” said George Canellos, co-director of the SEC’s enforcement division.

New York-based JPMorgan called the settlements “a major step” in its efforts to put its legal
problems behind it. The bank said it cooperated fully with all of the agencies’ investigations and
continues to cooperate with the Justice Department in its criminal prosecution of the two former
traders.

“We have accepted responsibility and acknowledged our mistakes from the start, and we have
learned from them and worked to fix them,” JPMorgan CEO Jamie Dimon said in a statement. “We will
continue to strive towards being considered the best bank — across all measures — not only by our
shareholders and customers, but also by our regulators.”

The trading loss that surfaced in April 2012 shook the financial world and damaged the bank’s
reputation.